Wall Street Law Firm Sullivan & Cromwell Admits AI‑Generated Errors in Court Filing

Sullivan & Cromwell, a prominent Wall Street law firm, confirmed a significant court filing contained errors resulting from artificial intelligence hallucinations. The firm apologized after a rival law firm identified multiple inaccuracies.

This admission comes amidst a high-profile legal proceeding. Sullivan & Cromwell represents liquidators appointed by authorities in the British Virgin Islands. These liquidators are engaged in actions against Prince Group, a company led by Chinese-born businessman Chen Zhi. US prosecutors previously charged Chen with wire fraud and money laundering, alleging billions of dollars stolen from victims globally.

The errors, identified by law firm Boies Schiller Flexner, were present in an April 9 filing. These mistakes included misquotations of the U.S. bankruptcy code and incorrect case citations. Sullivan & Cromwell later stated that its comprehensive AI policies were not followed during the document's preparation. The firm further confirmed its secondary review process also failed to detect the AI-generated false citations. Andrew Dietderich, co-head of Sullivan & Cromwell’s global restructuring group, issued an apology for the errors. He thanked Boies Schiller Flexner for their diligence in identifying the issues and expressed the firm's regret.

The incident underscores the challenges and responsibilities associated with AI adoption in legal practice. While artificial intelligence offers potential efficiencies, legal professionals are ethically bound to ensure absolute accuracy in all court submissions. This event highlights the critical importance of human oversight and strict adherence to internal protocols when deploying AI tools. The legal industry will now observe how other firms respond by re-evaluating their AI usage policies and training requirements.